Current: 5,863 (fut: 5,902);
The futures premium has increased to around 35. The index gained for the third day in succession. It could hit 5,925 or correct back to 5,800. Stop-loss shorts at 5,875 and stop-loss long positions at 5,825. The bullspread of long 5,900c (66) and short 6,000c (28) could gain another 15-20 if the index hits 5,900.
HERO MOTO CORP
Current price: Rs 1,713;
Target price: Rs 1,765
Resistance at Rs 1,725-1,740. Next resistance at Rs 1,765-1,780. Keep a stop at Rs 1,690 and go long. Add to the position between Rs 1,730 and Rs 1,740. Book profits above Rs 1,765.
Current price: Rs 292;
Target price: Rs 299
The stock could bounce till the Rs 299-302 level. Keep a stop at Rs 288 and go long. Add to the position between Rs 295 and Rs 297. Book profits above Rs 299.
Current price: Rs 432;
Target price: Rs 421
The stock hit a three-month low at Rs 432-433. It could have a downside till Rs 420-421 or perhaps Rs 412-415. Keep a stop at Rs 437 and short. Add to the position between Rs 428 and Rs 432. Book profits or partial profits at Rs 421.
Current price: Rs 313;
Target price: Rs 297
The stock could test support at Rs 305-306 and if that breaks, it could fall till Rs 294-297. Keep a stop at Rs 317 and go short. Add to the position between Rs 301 and Rs 305. Book profits below Rs 297.